Franchising in Portugal: validating initial training

A business may run well with its founder on site, yet reveal weaknesses when someone else takes over operations. Before expanding, you need to demonstrate that an independent business owner can learn and apply that knowledge. In a franchise network, initial training should prepare franchisees to make decisions and carry out tasks — not merely sit through presentations.

1. Define what the franchisee must be able to do

Start with the tasks that determine the quality, safety and continuity of the business. The aim is not to pass on all the founder’s experience at once, but to identify the essential skills needed to open without constantly relying on them.

Organise these skills into three groups:

• Operations: preparing the premises, delivering the service, checking quality and resolving routine problems.
• Management: interpreting results, controlling stock, organising staff rotas and anticipating cash flow needs.
• Responsibility: recognising legal obligations, handling complaints and knowing when to seek specialist help.

For each skill, write down an observable outcome. ‘Understand stock management’ is vague. ‘Receive a delivery, identify a discrepancy and record it correctly’ gives you a basis for assessing learning.

Distinguish between roles, too. The franchisee who manages the business and the person responsible for day-to-day operations may need different training pathways. If only one person has a critical skill, define how cover will be provided during holidays, illness or after their departure.

2. Build a programme around practice and assessment

Use the existing business as a learning environment, but do not confuse observation with the ability to perform a task. A guided visit shows how the business works; it does not prove that a trainee can replicate it.

A useful programme combines advance preparation, demonstration, supervised practice and independent performance. Reference materials help, but real work — or a sufficiently realistic simulation — should be at the heart of the training.

Include more challenging situations: a valid complaint, a failure in the invoicing system, a staff absence or a discrepancy when cashing up. Teach trainees the limits of their authority and the escalation procedures, without encouraging improvisation on safety or compliance matters.

Create a simple assessment checklist with four elements:

• The task to be performed.
• The conditions and resources available.
• The evidence required to pass.
• Critical errors that require the assessment to be repeated.

For example, in a simulated customer interaction, completing the sale is not enough: the trainee must provide accurate information, record the transaction and handle the customer’s data appropriately.

Test the programme with someone who has not learnt directly from the founder. If they need constant informal explanations, review the training. The difficulty may lie in the teaching method rather than the participant’s ability.

3. Set clear rules before making commitments

Portugal has no specific franchise law or dedicated compulsory register for franchisors or franchisees. Among other relevant legal provisions, the general rules of the Portuguese Civil Code apply: freedom of contract under Article 405, good faith in negotiations under Article 227, and good faith in performance under Article 762.

Nor is there a specific statutory pre-contractual disclosure period for franchising. This does not remove the general duties to provide information and deal fairly. Training conditions that could affect the investment or opening date should be clarified during negotiations.

The contract and its schedules should define:

• Who must attend the training and any prerequisites.
• The content, format, location and expected duration.
• The costs included and the expenses borne by the franchisee.
• Assessment criteria and opportunities for reassessment.
• The consequences of absence, withdrawal or failure to pass.
• The procedure to follow when a delay is attributable to the franchisor.

Where standard contract terms are used, Portuguese Decree-Law No. 446/85 must be observed, including its duties to communicate terms and provide information. Avoid giving the franchisor entirely subjective discretion over whether a trainee passes, or imposing disproportionate consequences.

The European Code of Ethics for Franchising is a self-regulatory instrument, not a Portuguese law of universal application. Initial training is among the good practices it promotes. Brand-specific training does not, however, replace any qualifications, credentials or training legally required for the particular activity.

4. Link approval to opening and retain evidence

Treat attendance, successful completion and authorisation to open as separate matters. Attending every session does not, in itself, demonstrate operational competence; passing the assessment does not remove the need for licences or other operating requirements either.

Keep records of participants, content, the version of the materials used, exercises completed and results. Where there are gaps, provide a remedial training plan setting out tasks, available support and reassessment. Protect the personal data in these records and restrict access to those who need it.

Before setting an opening date, confirm who has demonstrated each critical skill. If the local manager is replaced, apply the previously agreed rules for training and assessing their replacement.

Practical takeaway: before recruiting franchisees for your network, choose a critical task, teach it to someone with no experience of your business and assess their ability to perform it independently. This exercise helps turn personal knowledge into skills that can be passed on.